When will the value of your house finally start climbing again? Below are exclusive forecasts compiled by financial services company Fiserv for 384 real estate markets across the United States. For the most part, the numbers are moving higher  Boston suburbs and parts of Washington state are expected to see sharp gains, and the San Francisco Bay Area is positively booming. While there may be more pain to come in hard-hit Vegas and Miami, at least the double-digit losses are expected to end. Even Salinas, Calif., where home prices were cut by more than half when the bubble burst, is forecast to see a modest increase in prices by next fall.

We are still trying to sort through how much of this new housing demand was caused by government stimulus and how much was intrinsic, says Mark Fleming, chief economist at First American Core Logic, a real estate research company. He says that, in general, diversified economies (think Boston) have bounced back better than areas that rely on one industry (think Michigan). Miami will bounce back, Fleming says, because hey, its Miami. It always bounces back. Big picture? For the foreseeable future, Fleming expects the real estate market to be more tortoise than hare. We need slow, sustainable growth.

I’m out of Sacramento, CA. They forecast a 6% increase in home prices next year. Don’t you believe it. We have NOT hit bottom yet. I think we are getting close, only because we are down to about 2002 or even 2001 prices and I think the boom began around 1998 with it accelerating steadily toward 2006.

So I don’t think there is a lot more value to be lost on homes around the greater Sacramento area, but I do know in times like these, prices dip beneath the mean before reverting. I haven’t seen that dip beneath the mean yet. Then there is the shadow inventory of foreclosures and lots more pain in the economy.

We may only go down another 10-15% in home value from current values over the next 2 years and may stabilize. That said, prices should stagnate for the better part of a decade UNLESS we see the double-digit inflation the FED is shooting for. And frankly, I am betting that they can achieve that inflation by continued soaring deficit spending.

So I see another 10% drop, 5 years of stagnation, and then a rapid doubling of house prices due to HEAVY inflation.

Just a WAG, but that is my expected scenario — in these unpredictable times. Grain of salt and all.

Who the hell knows what is going to happen a year from now, let alone 10?

Not exactly. Sales may be up from 2 yrs ago, but the prices have come down drastically. There are many foreclosures and desperation sales. House prices are half what they were five years ago--and they're still too high. Here in the Bay Area, you get half the house or twice the money compared to anywhere else in the country. In the SF Bay Area, for $350,000 you get a 1000 sq. ft. house on a 5000 sq. ft. lot. In the Houston area, I found 641 single family homes, 2000 sq. ft or larger, on lots 10,000 sq. ft. or more, for under $170,000. In other words, four times more house for the same money. Do people make four times more money? No. This is why I think the prices haven't hit bottom in the Bay Area.

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